Keeping out of the ‘weeds’ from your business is a lot about having the right strategy that suits your business, not just using the latest, most popular tactic, writes Next Level Tradie Daniel Fitzpatrick.
Constantly putting out fires with no time to work on the business? Most tradie business owners hit a point where they’re tangled in the weeds.
So, they push harder, take more on themselves, go back on the tools, work long hours and try to muscle through. But eventually the hours stack up, mistakes creep in, and the pressure gets even heavier. The danger is that the longer you stay stuck in the weeds, the less time you have working on the things that move the needle in the business.
Working harder won’t get you out of the weeds; you need a different approach.
When a boat gets caught in the weeds, speeding up just gets you stuck faster.
A good skipper slows down, assesses the problem, clears the propeller, resets direction, and then heads to better waters.
Weeds come in various forms; some are thin and stringy, wrapping around anything they come in contact with, while others are thick and heavy, slowing the boat to a standstill.
A fencing client, Mike (not his real name), came to me with what I call ‘bad job weeds’. When Mike was scoping the job, there were some initial alarm bells, but he decided to take it anyway, as there was a gap of a few weeks in the schedule and he wanted to keep his team busy.
The job lasted longer than expected, with the client adding more and more requests almost daily. Then he argued about the bill and then demanded a massive discount at the end of the job. When Mike asked around, he discovered that he wasn't the only contractor this client had played this game with. He eventually got paid, but much less than the original invoice. He screens more carefully now.
Then there was John (also not his real name), who was stuck in the ‘too much work weeds’. The work was piling up, and with a man down in the team, he chose to go back full-time on the tools for a few months to get things under control.
But that meant there was no time left to work on other parts of the business. Work booked ahead went down, and invoicing wasn’t getting done on time, which put pressure on cash flow. Once John found time again to market and start invoicing, job bookings increased back to the 3-4 months buffer, and there was a healthy bank balance again.
I see this a lot as a trades business coach; they’ve got plenty of tactics, but don't have the game plan holding everything together.
Let me explain
Strategy is looking at the big picture and overall direction of the business, whereas tactics are day-to-day actions dealing with what's in front of you. The problem is that most of the so-called experts promote tactics that, if applied without a good strategy behind them, can get you into trouble.
For example, one tactic my clients use is ‘controlling the quote’, a strong follow-up process to maximise the conversion rate of quotes to jobs. It works well.
But if it snags the wrong kind of work with poor margins and difficult clients, then that tactic has made the business worse, not better.
Here are five ways to keep you out of the weeds:
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Be clear on where you’re heading and the dangers along the way.
Be clear about your vision, your map. The map is your vision…
- What kind of business do you want that works for you and your family?
- What do you want your business to look like in the next 3-5 years?
- What kind of work do you want and don’t want?
- What size ideally do you want your team to be?
- What’s too big or too small?
- What kind of team do you want, and which key team members do you want to work with in the long term?
- How much profit and cash buffer do you need to be making in the business?
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Identifying the landmarks
Once you know where you want to go, you need a way of measuring it to make sure you stay on track. These are your KPIs (Key Performance Indicators) in the business. They must be clearly measurable, so it's really obvious if you have achieved them or not.
One of my painting clients lost a major builder client. In this market, finding another building client who had the work and would pay the rates he wanted was difficult. He needed more work now, but one of his KPIs was a gross margin of 25%+. He decided to target residential work instead, where margins would fit. He got the turnover back and still had strong margins while others in his market were buying work and going backwards.
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Watching the compass
Just like the compass shows you which way to head. KPIs only work if you regularly measure your results. Review your progress against the KPIs at least monthly and adjust fast if you’re off track. It's easy to fix one month, hard to fix 12.
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Be flexible when bad weather comes
When storms come, and they will, it's time to take shelter, rather than head for open water. Your destination or overall strategy likely won’t change, but your tactics will.
A painter client of mine was going to stay on the tools another 1-2 years while he trained key team members to run the job sites.
However, he was carrying a number of long-term injuries that deteriorated more quickly than anticipated. These injuries required several surgeries close together. He could no longer be on the tools, so he had to change tack quickly, targeting work in the short term that the team could do without him being on site.
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A good captain is always accountable
A captain of the ship is accountable to the passengers, crew and boat owner. Maritime laws and rules that must be adhered to, which provide a structure and ensure everyone on board is kept safe. So, who are you accountable to so your business is safe and thriving?
It always takes effort and focus to keep on track.
Without the proper accountability, it's easy for even experienced tradies to slip back into old habits and start reacting to what's in front of them rather than the main mission.
This could be a mentor or coach who knows enough about you and your business, with whom you can talk about the real issues. Someone you respect who can call you out when you need it, help you get clear on your goals and how to get there?
If you feel you’re getting caught in the weeds or just want to avoid them. Then book a free strategy session with me, so leave your credit card behind. We’ll map out where you want to go, spot what's holding you back and give you a clear plan forward.
For more information, or to book a time to find out how Daniel might be able to help you, see:
Disclosure: The information presented in this article is general in nature and not intended to be legal advice for individual situations. You should speak to an expert about your specific circumstances and needs.
